Three Tips to Make 1099s for Contractor Wages Easy

It’s the time of year when you need to be thinking about reporting to the IRS what you have paid to employees. While reporting full-time staff salaries is usually straight forward, part-time employee and contractor reporting can be tricky for smaller firms with limited accounting budgets.

Here’s the gist: Though specifics can vary, the IRS usually requires freelance employees, recurring sub-contractors or any contractors paid more than $600 yearly to receive a 1099-MISC form that must also be filed with the IRS. Filing for calendar 2012 opens this month and runs until February 28, with an extension to April 1 for electronic filers.

While working with an accounting professional is advised, the IRS has been aggressive about creating easy-to-use online resources to make 1099-MISC reporting easier.

Check out the tips at Entrepreneur.com for reporting part-time contractor wages, plus the tools you need to get it done.